9. Invest In People
Investing in people, to some critics, sounds like indentured servitude. But for some people, this might be a great way to earn some cash further down the line by helping someone else with cash right here and now.
Here’s how it works. Companies like Pave or Upstart offer what are known as human capital contracts which allow you to invest in the future careers of other people. In exchange, you’ll get a share of their future earnings. It’s an investment opportunity, much like investing in a company early on.
Of course, there are risks involved as with any investment opportunity, but if you plan your investments out right and find someone who you think can make it big in the future this could help you out a few years down the line, during your retirement, when you’ll get a return on your investment.
10. Set Up a Retirement Paycheck
One of the biggest mistakes you can make as a retiree is not setting up a retirement paycheck and allowing yourself to dip into your savings at any time, for any reason. Sure, you do deserve to spend your money after years of hard work, but you have to be smart about how you do it!
Structuring regular deposits from your investments into your checking account will help structure your monthly expenses so you don’t accidentally blow through your savings too quickly.
Furthermore, this will help you evade a big tax bill at the end of the year by having state and federal taxes taken out of each paycheck instead. This is all known as a systemic withdrawal plan, which many mutual funds offer to their clients, so it’s easy to set up!
